Organization leaders expect recovery by mid-2021
Many business leaders and entrepreneurs have expressed their hope that Bangladesh's economy will commence to recover from mid-2021 following the Covid-19 vaccine arrives.
"We expect the garments sector to recover from June 2021," stated Rubana Huq, president of Bangladesh Garment Makers and Exporters Association (BGMEA).
With a vaccine already being disbursed in the UK and US, the Bangladesh government signed a trilateral deal with Beximco Pharmaceuticals and the Serum Institute of India for three crore doses.
The coronavirus fallout on businesses was the most remarkable aspect of 2020.
Besides, the ongoing crisis features exposed the garment sector's vulnerability to forced closures and contract losses, Huq said.
"We will mainly consolidate our organization by decreasing operational expenditures through restructuring while concentrating on merchandise diversification and securing different markets in 2021," she added.
Fazlul Hoque, managing director of Plummy Fashions Limited, also hoped that the country's economic recovery would begin from June next year as the vaccine is going to be ready to roll out on the market.
"We experienced some negatives and lots of positives amid the Covid-19 outbreak," he stated.
For instance, having less preparation for such an all natural disaster was the main negative from Covid-19.
"But we've learnt that people could reveal our interior strength and resilience hence following the first wave infections, we had been recovering fast despite the fact that the second wave features started affecting us,'' Hoque added.
Still though, many anticipate expanding their business in 2021 in light of their hopes for recovery.
"We will expand our procedures next year," explained Rupali Chowdhury, president of the Foreign Investors Chamber of Commerce and Sector.
When the situation improves, the market will rebound and product require will rise, said Chowdhury, likewise the managing director of Berger Paints Bangladesh.
However, the demand for more costly products might rebound faster when compared to goods meant for middle- or lower-income consumers. For instance, the recovery of clothes will be slower in comparison to gold and other luxury products, Chowdhury said.
"I think 2021 will head out slow and so will the recovery but after June, the problem begins improving," said AK Azad, former president of the Federation of Bangladesh Chambers of Commerce and Industry.
Like Chowdhury, Azad also ideas to expand his spinning and textile organization that may specialise in high-benefit garment items in 2021.
"The training from the Covid-19 fallout is how exactly we can reduce the overhead costs like bank loan, cost of businesses and bank borrowing," added Azad, managing director of Ha-Meem Group.
Regarding to Rizwan Rahman, president of the Dhaka Chamber of Commerce and Sector, although a V-shaped recovery trajectory was previously forecasted, Bangladesh's economy will probably experience a U-shaped restoration because of a prolonged outbreak.
"The correlation and nexus of the exclusive sector and economic growth has always been evident and considering this, monetary recovery through individual sector improvement ought to be prioritised," Rahman said.
Bringing the privately owned sector's competitiveness and self-assurance back again to pre-pandemic levels should be of utmost importance going into 2021, he added.
Relating to Rahman, the DCCI worked well to support the individual sector and ensure financial revival amid the ongoing pandemic.
"We as well highly prioritised low-cost and flexible financing options for enabling the revival of the exclusive sector as it may be the lifeline of economical development," he said.
Like the DCCI president, Ali Reza Iftekhar, managing director and CEO of Eastern Bank, said small businesses were hit hard by the pandemic.
The second wave of coronavirus infections over the EU has only brought even more cause for concern, he added.
Syed M Tanvir, taking care of Director of Pacific Jean's, explained the apparel industry offers been among the worst affected industries simply by this pandemic. zIt is normally estimated that Covid-19 will wipe $297 billion from the global apparel marketplace in 2020, a 15.2 % decline compared to 2019.
Although Bangladesh's initial recovery has been very good, it is prematurily . to gauge exactly what lengths the united states has come given that its key export markets have already been badly hit by another wave of infections, explained Tanvir, also director of the Chattogram Chamber of Commerce and Industry.
For many years nowadays, the International Labour Organisation, retailers and brands have taught lessons on compliance but through the garment sector's darkest hour, their insufficient follow-through has been exposed, said Mohammad Hatem, senior vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association.
2021 is a challenging year but a lot of opportunities will come concurrently, according to Saiful Islam, managing director of Picard Bangladesh.
"We received 30 % fewer orders for next season in the household leather sector as a result of outbreak," said Islam, likewise president of the Leathergoods and Footwear Makers and Exporters Association of Bangladesh.
